Friends of the Earth says budget must tackle both climate concerns and cost of living

Friends of the Earth, a non-profit organisation that advocates for zero pollution, has spotlighted five concerns for the Government to address in Budget 2026.

The registered charity, a founding member of the Irish Environmental Network, has called on the Government to tackle the interlinked climate and cost-of-living crises.

In its pre-budget submission, Friends of the Earth has highlighted five areas that should be funded to address both of these crises and ease the burden on communities and people who are struggling.

Tackle Energy Poverty

Households across Ireland face among the highest electricity prices in the European Union, says Friends of the Earth.

Almost 300,000 households have entered arrears on their electricity bills, and more than 180,000 households have entered arrears on their gas bills.

These figures come from the latest Commission for Regulation of Utilities report, which shows that 13% of domestic electricity customers in Ireland, or some 298,336 people, are in arrears on their electricity bills, with a further 183,520 gas customers also in arrears.

Budget 2026 must provide immediate relief, Friends of the Earth says, and must also put lasting protections in place, such as an energy guarantee scheme.

In its submission, the organisation asks two questions:

Will Budget 2026 fulfil the programme for government’s commitment to expand fuel-allowance eligibility to include working family payment recipients?;

Will Budget 2026 restore the purchasing power of the fuel allowance, increasing payments by €9.50 weekly to €40, to align with inflation?

Deirdre Duffy, CEO of Friends of the Earth, said: “It is essential that this budget addresses the crippling energy-price crisis that is forcing people to choose between heating and eating.

“It’s no longer acceptable that our energy system is still dominated by dirty, expensive fossil fuels, and our buildings are cold, leaky, and unhealthy.”

Prioritise Retrofits

Retrofitting of homes, to make them warmer and more efficient — thereby lowering bills, raising housing standards, cutting pollution rates, and improving health and wellbeing — is another key area highlighted by Friends of the Earth.

The organisation asks that Budget 2026 prioritise the people most at risk of energy poverty by increasing investment in retrofitting, and by providing dedicated compliance funding for mandatory building-energy ratings for rental properties.

Ms Duffy said that the Government “must increase funding for retrofitting the coldest, leakiest homes, putting renters and social-housing tenants first”.

“We need a huge national insulation effort, one that focuses on people most in need, provides decent green jobs, makes our homes and communities warmer and more affordable to heat, and that protects future generations from the worst effects of climate change,” said Ms Duffy.

Say No to Fossil Fuel Infrastructure

The third area of concern highlighted by the organisation is the Government’s decision to favour a temporary, State-controlled, liquefied natural gas (LNG) terminal for emergency use.

According to Friends of the Earth, this is the wrong approach, on both climate and energy-security grounds.

Before any further steps are taken with the LNG terminal project, the Government should clarify the adverse impacts this will have on customers’ bills, Friends of the Earth says.

Targeted Transport Funding

The fourth area of concern highlighted by the organisation is transport emissions.

Beyond this, Friends of the Earth highlights how congestion poses significant economic costs, with an urgent need for sustainable transport solutions.

In its pre-budget submission, the organisation suggests three solutions to the Government to tackle transport concerns, including:

Introduction of targeted EV subsidies to rural drivers, who have fewer options;

Revision of the vehicle-registration tax to incentivise smaller, greener vehicles, applying higher taxes to larger vehicles such as SUVs;

Introduction of congestion and parking charges, to be initially rolled out in Dublin by 2027, to increase road space for public transport.

Pollution Tax Fund

The final area for concern highlighted by Friends of the Earth is the need to unlock new sources of funding to ensure Ireland’s transition to a green economy.

These would include the introduction of a carbon levy on shipping, a new tax on private-jet flights, and the removal of excise and Vat exemptions on aviation fuel.

Ms Duffy said that the Government must tackle the climate crisis in a way that “makes life better for people, especially people most in need”.

“Every budget decision should be tested through the lens of whether it prioritises the wellbeing of both people and the planet that we all rely on,” she said. “We need a whole-of-Government approach to climate action that moves beyond making this the responsibility of any one Government department, and beyond a focus on mere emission reductions.”

Friends of the Earth additionally calls on the Government to commit to the €463.5m needed annually to support nature protection and restoration, and to continue the necessary funding increases for the National Parks and Wildlife Service by 25% in Budget 2026.